Zacks Investment Research downgraded shares of CNO Financial Group Inc. (CNO) from OUTPERFORM to NEUTRAL on November 22, 2012, with a target price of $9.25.
We are downgrading our recommendation on CNO Financial to Neutral based on its high financial leverage and constantly deteriorating results in the Bankers Life segment. The company's third quarter earnings surpassed the Zacks Consensus Estimate and the year-ago numbers on the back of continued favorable trends in annuity spreads, improved top line and benefit ratios along with better investment results in corporate segment. The quarter, however, experienced adverse impact of review of actuarial assumptions and an increase in litigation reserves. The latest recapitalization plan has improved the capital structure and debt maturity profile. It is also expected to augment the bottom line and ROE. Improved credit ratings, strong investment portfolio and declining expenses are the other positives. Although underwriting and pricing challenges remain primary concerns, increasing new business volume, along with cost containment measures are expected to support the bottom line in the long run.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on CNO Financial Group Inc. (CNO),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment